Question 1

Skill-based pay plans:
A)discourage employees from learning new jobs.
B)create a psychological distance between employees and managers.
C)discourage poor performers from leaving the organization.
D)can be expensive because they motivate employees to spend more time learning new jobs.
E)All of the answers are correct.

Accepted Answer

Skill-based pay plans are designed to motivate employees to learn new skills or jobs, which can increase the organization's payroll expenses as employees achieve higher levels of skill and thus qualify for higher pay. This approach contrasts with traditional pay plans that compensate employees based on their job title or position, regardless of the number of skills they possess.

Question 2

Which of the following is most consistent with employability - namely, that employees are expected to continuously learn skills that will keep them employed?
A)Competency-based rewards
B)Job status rewards
C)Job evaluation systems
D)Individual performance-based rewards
E)Competency-based rewards and job status rewards

Accepted Answer

The answer of Which of the following is most consistent...

Question 3

Performance-based rewards have been criticized on the grounds that:
A)they undermine the employee's motivation from the work itself.
B)they potentially distance employees and management from each other.
C)they tend to discourage creativity.
D)they are used as quick fixes for problems.
E)All of the answers are correct.

Accepted Answer

All of the answers are correct. Performance-based rewards can have negative effects such as reducing intrinsic motivation, creating distance between employees and management, discouraging creativity, and being used as a quick fix without addressing underlying issues.

Question 4

In 1436, the waterways of Venice were used to fully load 10 galleons with supplies in just six hours.As each vessel was towed along the narrow waterway, people at each house transferred munitions, cardage and other supplies to the passing vessel.By the end of the street, each vessel was fully loaded and ready for sailing.This event, known as the 'Arsenal of Venice', is an early example of:
A)self-leadership.
B)gainsharing.
C)job specialization.
D)constructive thought patterns.
E)job rotation.

Accepted Answer

The event of 'Arsenal of Venice' demonstrates job specialization. Each house was responsible for transferring a specific type of supply to the passing vessel. This division of labor and specialization of tasks helped to maximize efficiency in loading the galleons.

Question 5

A mid-sized city introduced a reward system whereby employees would find ways to reduce costs and increase work efficiency.Every employee would receive a portion of the surplus budget resulting from these cost savings.This city is using:
A)a gainsharing plan.
B)a commission system.
C)a piece-rate plan.
D)a share option plan.
E)None of the answers apply.

Accepted Answer

The reward system introduces the concept of sharing the gains resulting from cost savings among the employees. This is a typical characteristic of a gainsharing plan, where employees receive a portion of the surplus budget achieved by the organization as a result of their efforts to increase efficiency and reduce costs. Commission, piece-rate, and share option plans are focused on rewarding employees based on sales, productivity, or stock options, respectively, and are not applicable in this scenario. Therefore, A is the best choice.

Question 6

Which of the following job design strategies tends to increase work efficiency?
A)Job enlargement
B)Job rotation
C)Job enrichment
D)Job specialization
E)None of these strategies increases work efficiency

Accepted Answer

Job specialization involves dividing tasks into smaller, more specific tasks and assigning them to employees who are trained to perform those tasks efficiently. This strategy tends to increase work efficiency because employees become highly skilled and specialized in their tasks, which reduces the time it takes to complete them and increases output.

Question 7

Which of the following tends to create an "ownership culture" and align employee behaviors more closely to organizational objectives?
A)Job evaluation
B)Commissions
C)Share option plans
D)Employee share ownership plans
E)Stock option plans and employee stock ownership plans

Accepted Answer

Stock option plans and employee stock ownership plans give employees a stake in the company, aligning their interests with organizational goals and fostering an ownership culture.

Question 8

Gainsharing plans tend to:
A)increase efficiency without paying employees any financial reward.
B)the employee pay directly to company profits.
C)create a reasonably strong effort-to-performance expectancy.
D)reward individuals for their own personal performance rather than team or organizational performance.
E)increase efficiency without paying employees any financial reward creating a reasonably strong effort-to-performance expectancy.

Accepted Answer

Gainsharing plans are designed to link rewards to performance, creating a direct correlation between the effort employees put in and the performance outcomes. This linkage fosters a strong effort-to-performance expectancy, motivating employees to work efficiently and effectively as they can see a clear path from their efforts to their rewards.

Question 9

Which of these performance-based rewards tends to create the lowest E-to-P expectancy?
A)Share options
B)Individual piece rates
C)Gainsharing
D)Individual commissions
E)Team bonuses

Accepted Answer

Share options tend to create the lowest E-to-P expectancy because the link between performance and outcome is unclear and there are often external factors that can affect the value of the shares. This makes it difficult for employees to see a direct connection between their effort and the reward they may receive.

Question 10

Steelweld, a car parts manufacturer, pays employees a higher hourly rate as they learn to master more parts of the work process.Employees earn $10 per hour when they are hired and they can earn up to $20 per hour if they master all 12 work units in the production process.Steelweld is applying which of these reward systems?
A)Skill-based pay
B)Piece-rate pay
C)Job evaluation system
D)Seniority-based pay
E)None of the answers apply.

Accepted Answer

Steelweld is paying employees based on their skill level and their ability to master different parts of the work process. This aligns with the concept of skill-based pay, where employees earn higher wages as they acquire new skills and knowledge.

Question 11

Which of the following is considered an individual incentive?
A)Gainsharing plans
B)Balanced scorecards
C)Share options
D)Share ownership
E)None of the answers apply.

Accepted Answer

The answer of Which of the following is considered an...

Question 12

Scientific management includes which of the following?
A)Assigning employees to fixed hourly wages.
B)Systematically dividing a job into its smallest possible elements and assigning these divided tasks to employees who are best qualified to perform them.
C)Combining tasks so employees perform an entire work process from beginning to end.
D)Encouraging employees to set their own goals and have positive thoughts about their work performance.
E)All of the answers are correct.

Accepted Answer

Scientific management involves breaking down tasks into smaller, simpler tasks and then assigning them to the workers best suited to perform them. This increases efficiency and productivity. The other options do not reflect scientific management principles.

Question 13

Which of the following is NOT an individual level performance reward?
A)Piece rates
B)Commissions
C)Awards
D)Gainsharing
E)Bonuses

Accepted Answer

Gainsharing is a group-level performance reward as it rewards a team or department for achieving specific goals or targets together.

Question 14

Which of the following is an individual incentive?
A)Gainsharing plans
B)Piece-rate plans
C)Share options
D)Share ownership
E)None of the answers apply

Accepted Answer

Piece-rate plans are individual incentives as they typically pay employees based on the number of units they produce or tasks they complete. Gainsharing plans, share options, and share ownership are all team incentives that reward groups of employees for achieving specific goals or improving overall company performance.

Question 15

Share option plans:
A)are illegal in America.
B)give employees the right to purchase company shares at a future date at a predetermined price.
C)directly award bonuses to employees based on cost savings and increased labor productivity.
D)tend to weaken employee commitment to the organization.
E)give employees the right to purchase company shares at a future date at a predetermined price and tend to weaken employee commitment to the organization.

Accepted Answer

Share option plans give employees the right to purchase company shares at a future date at a predetermined price. They are a form of employee incentive and are legal in America. Option plans do not directly award bonuses to employees based on cost savings and increased labor productivity. While some may argue that option plans weaken employee commitment to the organization, others believe that they help align employee interests with those of the company.

Question 16

When applied to non-management employees, which of these has a relatively WEAK connection between the reward and individual effort?
A)Piece rate pay.
B)Commissions.
C)Profit-sharing bonuses.
D)All of the answers are correct.
E)Commissions and profit-sharing bonuses.

Accepted Answer

Profit-sharing bonuses have a relatively weak connection between the reward and individual effort because the bonus is based on the overall performance of the organization rather than the individual employee's performance. In contrast, piece rate pay and commissions are directly tied to the individual employee's effort and output.

Question 17

Which of these performance-based rewards tends to create the strongest psychological connection between the individual employee's work effort and the reward received?
A)Profit sharing plan
B)Gainsharing plan
C)Employee stock ownership plan
D)Employee stock option plan
E)None of these rewards offer any psychological connection between the individual employee's work effort and the reward received.

Accepted Answer

Gainsharing plans directly link the employee's work effort to the reward received, as the reward is based on the amount of cost savings or productivity improvements achieved by the team or department. This creates a strong psychological connection between the employee's work and the reward, as the employee can see the direct impact of their efforts on the overall success of the organization. Profit sharing plans and ESOPs can also create some connection to the individual's work effort, but not as direct as gainsharing plans. Employee stock option plans do not necessarily reward work effort, as the value of the stock may be influenced by factors outside of the employee's control.

Question 18

Which of the following is an advantage of job specialization?
A)The quality of work increases.
B)Jobs can be mastered quickly.
C)Employees are more involved with their jobs.
D)The work is less repetitive.
E)Task specialization has no clear advantages to the organization.

Accepted Answer

Job specialization allows individuals to focus on a specific set of tasks, which often leads to increased efficiency and the ability to master their work quickly. This can lead to improved productivity and overall quality of work.

Question 19

Which of the following is LEAST likely to create an ownership culture?
A)Employee stock ownership plans
B)Profit sharing plans
C)Stock option plans
D)Balanced scorecards
E)None of the answers apply.

Accepted Answer

The answer of Which of the following is LEAST likely...

Question 20

When jobs are highly interdependent, employers should:
A)avoid using any form of performance-based reward system.
B)use a team-based reward.
C)use an individual-based reward.
D)use an organizational-based reward system.
E)use a team-based reward and use an organizational-based reward system.

Accepted Answer

When jobs are highly interdependent, it's important to encourage collaboration and collective achievement. A team-based reward system incentivizes group effort and success, aligning with the nature of interdependent work. An organizational-based reward system further aligns individual and team efforts with the broader goals of the organization, promoting a unified direction and shared success. Both approaches support a cohesive work environment where interdependencies are recognized and valued.

Quiz 6: Applied Performance Practices

Skill-based pay plans:

Which of the following is most consistent with employability - namely, that employees are expected to continuously learn skills that will keep them employed?

Performance-based rewards have been criticized on the grounds that:

A mid-sized city introduced a reward system whereby employees would find ways to reduce costs and increase work efficiency.Every employee would receive a portion of the surplus budget resulting from these cost savings.This city is using:

Which of the following job design strategies tends to increase work efficiency?

Which of the following tends to create an "ownership culture" and align employee behaviors more closely to organizational objectives?

Gainsharing plans tend to:

Which of these performance-based rewards tends to create the lowest E-to-P expectancy?

Which of the following is considered an individual incentive?

Scientific management includes which of the following?

Which of the following is NOT an individual level performance reward?

Which of the following is an individual incentive?

Share option plans:

When applied to non-management employees, which of these has a relatively WEAK connection between the reward and individual effort?

Which of these performance-based rewards tends to create the strongest psychological connection between the individual employee's work effort and the reward received?

Which of the following is an advantage of job specialization?

Which of the following is LEAST likely to create an ownership culture?

When jobs are highly interdependent, employers should: